Africa-Press – Malawi. The country’s civil rights group Forum for National Development (FND) has questioned the legality of Secretary to The President and Cabinet (SPC) Collen Zamba and Energy Ministry’s Principal Secretary (PS) Alphoso Chikuni in their involvement in changing the contract to favour Indian company, Jindal Limited on Kammwamba Coal–Fired Power Project at Electricity Generation Company (Malawi) Limited (EGENCO).
The grouping observes that SPC Zamba has no mandate to influence any contract on any government department arguing that the latter is abusing her office.
A press statement issued on Friday, October 13, 2023, signed by FND National Coordinator and Chairperson Fryson Chodzi and Bright Kampaundi hinted that SPC Zamba continues with corruption, and office abuse allegations without President Lazarus Chakwera’s action. FDN says it is high time Chakwera could take action on Zamba amid public discontent with her work.
“On 9th October 2023, we wrote the Anti–Corruption Bureau (ACB) and copied the Public Appointments Committee (PAC) of Parliament to investigate matters related to the Kammwamba Coal–Fired Power Project at Electricity Generation Company (Malawi) Limited (EGENCO). We noted the government’s decision to send on forced leave the Chief Executive Officer (CEO) and Director of Finance of EGENCO on the premise that they want to institute a forensic audit as an outcome of how the company survived two cyclones that affected it.
“Owing to the ambiguity of the decision, we started following up on the matter and learned a lot of underlying issues happening at EGENCO which must worry Malawians, hence our moving the two institutions to act. We received allegations against the Secretary to the President and Cabinet (SCP) and PS for Energy that they have been forcing EGENCO to hand over the Kammwamba Coal–Fired Power plant to an Indian Company called Jindal Limited,” reads part of FND statement.
FND adds, “EGENCO has already spent over MK4billion on Feasibility Study and Environmental and Social Impact Assessment (ESIA) of which they are being forced to hand over without outlining how this money will be recouped. It is of utmost importance that Malawians must understand the reasoning behind this proposed transfer of the project to Jindal Limited at no cost.
“How was this company identified and when was the due diligence conducted on the company? Malawians must be made aware of the agreement between Jindal and the Government of Malawi in terms of this particular project. How were other governance institutions such as the Office of the Director for Public Procurement and Disposal of Assets (PPDA), the Government Procurement Unit (GPU), and ACB involved in selecting Jindal Limited?”.
Chodzi worries, “Our worry emanated from the fact that there have been past allegations made against the Secretary to the President and Cabinet (SPC) Ms. Colleen. Zambia and PS for Energy in the energy sector including matters of fuel procurement where the allegations are such that the two have been pushing preferred suppliers on National Oil Company (NOCMA), and forcing the Electricity Supply Commission of Malawi (ESCOM) to enter a Power Purchase Agreement (PPA) with a foreign company in Utah.
“Owing to such, it would be therefore important to investigate how Jindal came into the picture as regards to Kammwamba project. We have also noted that the SPC and Secretary to Treasury (ST) have been acting illegally in making decisions as shareholders for EGENCO”.
FND questions, “EGENCO is a limited company and the shareholders are the public whose interests are kept in trust by the Secretary to Treasury (ST) and President the latter is represented by the SPC. Owing to the issue of shareholding, the Board of EGENCO was dissolved 9 months into their term and presently there is no Board of Directors at EGENCO.
“According to the laws governing limited companies, shareholders have no mandate to make management decisions, and in the absence of the Board of Directors, the shareholders cannot assume the powers and responsibilities of the Board. We have noted, however, that the SPC and the ST being representative of the shareholders, have taken upon themselves to act as Board of Directors of EGENCO, a matter that is illegal”
“As a matter of record, there are previous allegations related to fuel procurement against the SPC which were logged officially with Parliament and ACB. It is disheartening that despite these serious allegations, neither Parliament nor the ACB has made any noticeable efforts towards initiating an inquiry into Ms. Zamba’s actions.
“We strongly believe that Parliament should be investigated as to why it has not called her for an inquiry to address these allegations”, says FND. SPC Zamba has always remained mum on corruption and office abuse allegations while Chakwera keeps shielding her from any probe.
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